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Hindustan Times
4 days ago
- Business
- Hindustan Times
Five Signs of a Market Bubble Investors Are Tracking
The share price of online house flipper Opendoor Technologies has catapulted some 377% in the past month, despite a stagnant U.S. housing market. One of the biggest stock gainers Tuesday was Kohl's, a department store that has been losing ground to competitors for some time and has replaced its chief executive more than once in recent years. On Wednesday, the crowd favorites were unusual names such as GoPro and Krispy Kreme, with both the camera company and doughnut maker notching eye-popping gains over the week. What's going on? Some investors say the action is the latest phase in what has turned into a near-euphoric rebound from April's tariff turmoil. Since the market tumbled and then turned higher, there has been a stampede into risky assets such as meme stocks, cryptocurrencies and shares of smaller companies that have yet to turn a profit. To some, this resembles a bubble—a period of frenzied market activity and speculation that artificially inflates asset values, driving prices to an eventual breaking point. 'A lot of us thought that the [spring] correction had to do with the fact that valuations were rather stretched back in January and February, yet here we are,' said Ed Yardeni, president of Yardeni Research. 'It's almost like a slow-motion melt-up.' Here's what investors are tracking for signs of froth: Speculative stocks are having a moment The return of YOLO bets recalls the heady days of 2021, when online traders briefly drove the fading mall retailer GameStop to a $24 billion valuation, before rising interest rates brought the bull market to an end. The housing market is stalled, and Opendoor shares traded under $1 earlier this month. They closed Friday at $2.54. The bets on Kohl's center on the potential sale of the company's real-estate holdings, which Wall Street has eyed for years. The stock has still slid more than 70% since the start of 2022. Unprofitability isn't much of an obstacle. Avis and Aeva Technologies, both of which reported net losses in the first quarter, are flying high. Of the 33 stocks in the Russell 3000 that have tripled in price since the market bottom in April, only six have generated profits over the past year, according to a Bespoke Investment Group analysis. Shares of the ARK Innovation ETF, a fund that includes a number of speculative companies operating at a net loss, have climbed more than 36% year to date. 'That in itself is not unhealthy,' Callie Cox, chief market strategist at Ritholtz Wealth Management, said of the rise in speculative trades. 'When you get worried is when cracks start forming in the economy, yet you still have a huge appetite for speculation.' Crypto prices are surging Prices of Ethereum and bitcoin have soared in recent weeks, lifted by the Trump administration's pro-cryptocurrency policies and growing acceptance by mainstream financial institutions. But a new group of buyers has also pushed up prices: publicly traded companies that stockpile bitcoin, effectively transforming their own shares into a leveraged bet on the cryptocurrency. Those include Trump Media & Technology Group, which announced on Monday it had accumulated about $2 billion in bitcoin and bitcoin-related securities as part of a previously announced 'bitcoin treasury strategy.' Critics caution that practice could amplify risks in the crypto market, deepening selloffs. Those warnings haven't deterred an estimated five dozen companies from pursuing similar strategies. Breadth has improved Since stocks returned to their pre-April levels, the daily moves have been small. And the rally has expanded beyond the Magnificent Seven and other tech giants to include financial companies, industrial firms and communication services. The KBW Nasdaq Bank Index has climbed more than 7% over the past month, while shares of GE energy spinoff GE Vernova and advertising tech firm Trade Desk rose more than 20% in the same period. The number of stocks in the benchmark S&P 500 closing above their 50-day moving average is hovering at levels last seen in the fall, before the postelection 'Trump bump' in share prices. Analysts typically consider that kind of improving breadth a sign of a sustainable bull market. Yet stock valuations are stretched. The equity risk premium, defined as the gap between the S&P 500's projected earnings yield and the yield on 10-year Treasurys, is close to zero. That means that the extra return for owning stocks over lower-risk bonds has nearly vanished, which investors consider an unhealthy sign. The economy is holding firm Despite initial concerns that tariffs could kick-start inflation and drag on growth, the U.S. economy has kept chugging along. There are some signs of weakness: The annual inflation rate ticked up in June, as tariffs started to affect consumer prices. One basket of leading economic indicators recently pointed to slower growth in the second half of the year. But the increase in consumer prices has so far been modest, and economists' biggest worry—a sharp slowdown in the labor market—has yet to materialize. Such a shift could turn off the tap on U.S. consumer spending, effectively halting economic growth. Private-sector job growth has fallen to the lowest level in eight months. Hiring has slowed to a trickle, and college graduates are struggling to land roles. 'At a point where the job market is clearly weakening, it's interesting that we're seeing such optimism in markets,' Cox said. 'When the job market starts slowing, it doesn't turn around easily.' Write to Hannah Erin Lang at
Yahoo
15-07-2025
- Automotive
- Yahoo
Cathie Wood Is Buying Tesla Stock Here. Should You?
Tesla (TSLA) is seeing a chronic sales decline this year amidst rising competition from the likes of BYD (BYDDY), but this has not deterred influential investor Cathie Wood. The founder and chief executive of Ark Invest loaded up on nearly 60,000 TSLA shares late last week across two of her flagship funds: the ARK Innovation ETF (ARKK) and the ARK Next Generation Internet ETF (ARKW). Palantir Just Launched Warp Speed for Warships. Does That Make PLTR Stock a Buy? This Analyst Just Doubled His Price Target on AMD Stock How High Can Nvidia Stock Go as Jensen Huang Heads to China? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. At the time of writing, Tesla stock is down more than 13% down versus its three-month high. Cathie Wood investing more than $18 million in TSLA shares last week is notably positive for investors as it signals strong conviction in the company's long-term potential. Wood is bullish on the EV stock primarily because she sees transformative potential in its robotaxi and humanoid robot initiatives. According to her, autonomous services will drive up to 90% of the automaker's future value, with software-like margins exceeding 80%. Wood even has a long-term price target of $2,600 on Tesla stock, indicating relentless confidence in its innovation pipeline, including affordable EVs and artificial intelligence enabled mobility. Despite the company's launch of robotaxi services and progress on humanoid robots, UBS analyst Joseph Spak does not share Wood's optimism on Tesla stock. On Monday, Spak reiterated his 'Sell' rating on the EV stock, citing valuation concerns. TSLA has a forward price-earnings multiple of more than 230x currently – much higher than several top AI stocks, including Nvidia (NVDA), which trades at 41x forward earnings. Additionally, the investment firm cited the 'removal of 100% margin credit revenue, and a CEO who's arguably distracted from the business,' for its bearish view on Tesla stock. UBS currently has a $215 price target on Tesla that translates to potential downside of more than 30% from current levels. Other Wall Street analysts also remain dovish on TSLA shares – especially since the EV company reported a 14% year-over-year decline in quarterly deliveries in the first week of July. The consensus rating on Tesla stock currently sits at 'Hold' only with the mean target of $297 implying 5% downside from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Business Insider
14-07-2025
- Business
- Business Insider
Cathie Wood Pours $18.5M into Tesla Stock, Trims ACHR, Roku, and COIN Stocks
Popular investor Cathie Wood's ARK Invest made key portfolio moves on Friday, July 11, with electric vehicle giant Tesla (TSLA) leading the day's buys. At the same time, Wood continued to offload shares of electric aircraft maker Archer Aviation (ACHR), streaming platform Roku (ROKU), and cryptocurrency exchange Coinbase (COIN). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Wood Loads Up on Tesla Stock As per the daily trade disclosures, ARK added a total of 59,705 Tesla shares across its ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW), amounting to a hefty $18.5 million investment. The buy highlights Wood's continued conviction in Tesla as a core long-term holding, especially amid growing interest in AI-powered autonomous vehicles. In another notable buy, the ARK Autonomous Technology & Robotics ETF (ARKQ), the firm's ETF focused on autonomous tech and robotics, made a sizable addition of 425,933 shares of Aurora Innovation (AUR), valued at $2.29 million. Aurora is a key player in the self-driving technology space. Is Tesla Stock a Buy or Sell Now? Overall, Wall Street is sidelined on Tesla stock, with a Hold consensus rating based on 14 Buys, 13 Holds, and nine Sell recommendations. The average TSLA stock price target of $295.80 indicates 5.65% downside risk from current levels. ARK Trims Stakes in Archer, Roku, and Coinbase On the sell side, ARK reduced its position in electric aircraft maker Archer Aviation (ACHR), selling 168,990 shares for roughly $1.82 million from ARKK. Meanwhile, the firm continued to trim its position in Roku and Coinbase stocks. On Friday, ARK sold 42,332 shares of ROKU worth $3.82 million across ARKK and ARKW ETFs. It also trimmed its Coinbase stake once again, offloading 5,596 shares for $2.17 million through the ARKW ETF. The transaction follows a larger sale of 16,627 shares on July 10, as ARK continued to scale back its position in the cryptocurrency exchange amid recent market volatility. Wall Street's Take on ACHR, ROKU, and COIN Turning to Wall Street, Archer stock scores a Moderate Buy consensus rating, with the average ACHR stock price target of $11.75 indicating an 11.80% possible decline from current levels. Coinbase also carries a Moderate Buy rating, with analysts' average COIN stock price target of $307.71 implying a possible 20.50% decline. In contrast, Roku shares have a Moderate Buy rating as well, but with an average ROKU stock price target of $93.79 that points to a potential upside of 5.39%.
Business Insider
12-07-2025
- Business
- Business Insider
Cathie Wood Pours $18.5M into Tesla Stock, Trims ACHR, Roku, and COIN Stocks, 7/12/2025
Popular investor Cathie Wood's ARK Invest made key portfolio moves on Friday, July 11, with electric vehicle giant Tesla (TSLA) leading the day's buys. At the same time, Wood continued to offload shares of electric aircraft maker Archer Aviation (ACHR), streaming platform Roku (ROKU), and cryptocurrency exchange Coinbase (COIN). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Wood Loads Up on Tesla Stock As per the daily trade disclosures, ARK added a total of 59,705 Tesla shares across its ARK Innovation ETF (ARKK) and ARK Next Generation Internet ETF (ARKW), amounting to a hefty $18.5 million investment. The buy highlights Wood's continued conviction in Tesla as a core long-term holding, especially amid growing interest in AI-powered autonomous vehicles. In another notable buy, the ARK Autonomous Technology & Robotics ETF (ARKQ), the firm's ETF focused on autonomous tech and robotics, made a sizable addition of 425,933 shares of Aurora Innovation (AUR), valued at $2.29 million. Aurora is a key player in the self-driving technology space. Is Tesla Stock a Buy or Sell Now? Overall, Wall Street is sidelined on Tesla stock, with a Hold consensus rating based on 14 Buys, 13 Holds, and nine Sell recommendations. The average TSLA stock price target of $295.80 indicates 5.65% downside risk from current levels. ARK Trims Stakes in Archer, Roku, and Coinbase On the sell side, ARK reduced its position in electric aircraft maker Archer Aviation (ACHR), selling 168,990 shares for roughly $1.82 million from ARKK. Meanwhile, the firm continued to trim its position in Roku and Coinbase stocks. On Friday, ARK sold 42,332 shares of ROKU worth $3.82 million across ARKK and ARKW ETFs. It also trimmed its Coinbase stake once again, offloading 5,596 shares for $2.17 million through the ARKW ETF. The transaction follows a larger sale of 16,627 shares on July 10, as ARK continued to scale back its position in the cryptocurrency exchange amid recent market volatility. Wall Street's Take on ACHR, ROKU, and COIN Turning to Wall Street, Archer stock scores a Moderate Buy consensus rating, with the average ACHR stock price target of $11.75 indicating an 11.80% possible decline from current levels. Coinbase also carries a Moderate Buy rating, with analysts' average COIN stock price target of $307.71 implying a possible 20.50% decline. In contrast, Roku shares have a Moderate Buy rating as well, but with an average ROKU stock price target of $93.79 that points to a potential upside of 5.39%.
Yahoo
09-07-2025
- Business
- Yahoo
Innovation ETF (ARKK) Hits New 52-Week High
For investors seeking momentum, ARK Innovation ETF ARKK is probably on the radar. The fund just hit a 52-week high and is up about 92.4% from its 52-week low price of $36.85/share. But are more gains in store for this ETF? Let's take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed: ARK Innovation ETF provides thematic multi-cap exposure to 'disruptive innovation.' It is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research related to the areas of DNA technologies and genomic revolution, automation, robotics, energy storage, artificial intelligence, next-generation Internet and Fintech innovation. ARKK charges 75 bps in annual fees (see: all the Broad Developed World ETFs here). This ETF has been an area to watch lately, given Cathie Wood's, the high-profile CEO of Ark Investment Management, explosive moves in a few stock holdings of ARKK. Cathie Wood continued its active bets on disruptive innovation by purchasing shares of CRISPR Therapeutics AG CRSP and selling 908 Devices Inc. MASS and Roku Inc. ROKU. This move reinforces ARK's long-standing bullish stance on gene-editing technologies. ARK also bought a few shares of Beam Therapeutics Inc. BEAM, reflecting evolving conviction in the future of biotech innovation. Cathie Wood remains bullish on the transformative power of emerging technologies despite the market turbulence. ARKK might remain strong going ahead, given a weighted alpha of 60.23 and a higher 20-day volatility of 29.55%. There is definitely some promise for investors who want to ride on this surging ETF. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Beam Therapeutics Inc. (BEAM) : Free Stock Analysis Report ARK Innovation ETF (ARKK): ETF Research Reports CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report Roku, Inc. (ROKU) : Free Stock Analysis Report 908 Devices Inc. (MASS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
